The Benefits and Myths of UAE Offshore Banking

uae offshore banking

There are many benefits to UAE offshore banking if you’re a expat. Read on to see a list of what we believe to be the top 7.

1. Security

By using an offshore bank, based in a highly regulated, transparent jurisdiction with statutory protections for investors, such as the UAE, you can feel secure in the knowledge that your money is safe.

2. Service

Offshore bank accounts provide services catered to your personal needs, giving you 24 hour access to your money through online and telephone banking. A relationship manager is will also be assigned to your offshore bank account, so you will always have a direct point of contact, who will take the time to understand your banking needs and assist you accordingly.

3. Convenience

As an expat, being able to keep your bank account in one convenient location, no matter how often you travel or move countries, is a great benefit. Regardless of where you are in the world, you will always have access to your accounts. This reason alone is enough for many UAE expats to open an offshore bank account.

4. Tax

Offshore bank accounts in tax free jurisdictions can benefit you by keeping your money safe from your home country’s taxation laws, and by protecting it from taxes in the country in which you are residing.

5. Investing

Investing through an offshore bank is straightforward and can offer greater flexibility than a traditional bank. You are likely to find all of the tools you need to help you create a profitable investment portfolio that suits your risk profile and financial goals.

6. Foreign exchange services

With multi-currency accounts usually coming as standard with UAE offshore bank accounts, transferring money between accounts is quick and does not carry a fee. Offshore banks will also often provide a competitive foreign exchange rate, compared to traditional banks.

7. Lending and credit

Offshore banking is effectively a private banking service, and lending and credit services are usually far more flexible and customised to your financial needs. Offshore banks also offer their clients highly competitive mortgage rates.

You can take advantage of these benefits by opening an offshore bank account. The process is straight-forward and faster than you may expect. Some firms, like Zola Group, can open an offshore account within two days, provided that all basic requirements are met.

Here are a few myths that surround offshore banking

Myth 1 – Offshore banking is illegal

False. Offshore banking takes place in some of the most regulated banking destinations in the world. Because of the colorful history of banking, we have seen individuals use the benefits of offshore banking to take advantage of the system in less-than-legal ways; however, UAE offshore banking remains a strategic and legal form of asset protection and financial security.

Myth 2 – People only use offshore banks to evade tax

Offshore banks may be used to protect some of your finances from excessive taxing in certain countries. However, this is not the only advantage of an offshore account. See above to learn about the other advantages.

Myth 3 – Offshore banks are based in unscrupulous jurisdictions and operate in the shadows

There are banks located all over the world, and it is true that some offshore banks are based in less regulated jurisdictions. However, many are also based in highly regarded banking jurisdictions, such as UAE offshore banking, the Isle of Man, Switzerland and Singapore, which are highly transparent, highly regulated jurisdictions with internationally renowned reputations.

Myth 4 – You need to be wealthy to open an offshore bank account

Not necessarily. Some banks will let you open an account with as little as $500, while some will not take clients with a net worth below $1 mil. The fact is, most offshore banks do offer highly exclusive private banking services catered to the wealthy, for which one would expect to pay more. However, there are also some offshore banks that cater to mid-level accounts and offer the same exceptional rewards and services.

Myth 5 – You need to visit the bank in person to open an account

With telephone and internet banking now being the norm, most banks do not require that you be present to open an offshore bank account. As this may vary in UAE offshore banking, it is wise to investigate the matter further for the specific bank and offshore jurisdiction you wish to pursue.

Zola Group can assist in the opening a offshore bank account in the UAE and abroad. With over 680 offshore accounts successfully opened for our clients, we have the experience to get it done right the first time, without delay. Contact us to get started.

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